Following an annual review in accordance with its rules, the target constituent weights for the BofA Merrill Lynch Commodity Index eXtra (MLCX) will rebalance to the values shown in Table 1 below on December 31, 2015. Similar changes will propagate across the MLCX sub-indices.
Cotton will be removed from MLCX at the December 31 rebalancing, as it does not meet the quantitative criteria for selection and an exception is no longer deemed by the Index Committee to be appropriate. Of the contracts that remain in the index, Brent Crude Oil will decrease the most vs. last year’s target weight (-0.80 percent), and Live Cattle will increase the most (+1.09 percent).
MLCX is designed to provide a liquid, consistent, representative and cost-efficient benchmark for measuring commodity market performance. The index has representation in six key market sectors: Energy, Base Metals, Precious Metals, Grains & Oil Seeds, Livestock, and Soft Commodities & Others.
Table 1: MLCX contract weights
| Commodity | 2015 | 2016 | Change | ||||||||||
| Brent Crude Oil | 28.923196% | 28.116845% | -0.806351% | ||||||||||
| Gasoil | 11.935934% | 12.181546% | 0.245612% | ||||||||||
| Gasoline (RBOB) | 11.568973% | 12.002656% | 0.433683% | ||||||||||
| Wheat | 6.243975% | 5.832795% | -0.411180% | ||||||||||
| Copper | 5.279892% | 5.647866% | 0.367974% | ||||||||||
| Crude Oil (WTI) | 5.353026% | 5.189844% | -0.163182% | ||||||||||
| Corn | 5.626604% | 5.069962% | -0.556642% | ||||||||||
| Gold | 4.237603% | 4.677434% | 0.439831% | ||||||||||
| Aluminum | 3.071052% | 3.716389% | 0.645337% | ||||||||||
| Live Cattle | 1.972701% | 3.058645% | 1.085944% | ||||||||||
| Soybean Meal | 2.865186% | 2.560466% | -0.304720% | ||||||||||
| Natural Gas | 2.218872% | 2.509109% | 0.290237% | ||||||||||
| Sugar | 2.528880% | 2.467653% | -0.061227% | ||||||||||
| Coffee | 1.083545% | 1.433921% | 0.350376% | ||||||||||
| Soybean | 1.580864% | 1.346286% | -0.234578% | ||||||||||
| Zinc | 1.004851% | 1.272907% | 0.268056% | ||||||||||
| Lean Hogs | 1.027299% | 1.179683% | 0.152384% | ||||||||||
| Nickel | 0.877897% | 1.122229% | 0.244332% | ||||||||||
| Silver | 0.603848% | 0.613764% | 0.009916% | ||||||||||
| Cotton | 1.995803% | 0.000000% | -1.995803% | ||||||||||
| Source: BofA Merrill Lynch | |||||||||||||
Table 2: MLCX sector weights
| 2015 | 2016 | Change | |||||||||||||
| Energy | 60.000000% | 60.000000% | 0.000000% | ||||||||||||
| Grains & Oilseeds | 16.316628% | 14.809509% | -1.507119% | ||||||||||||
| Base Metals | 10.233692% | 11.759391% | 1.525699% | ||||||||||||
| Precious Metals | 4.841451% | 5.291198% | 0.449747% | ||||||||||||
| Livestock | 3.000000% | 4.238328% | 1.238328% | ||||||||||||
| Soft Commodities & Others | 5.608228% | 3.901574% | -1.706654% | ||||||||||||
| Source: BofA Merrill Lynch | |||||||||||||||
